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What are your thoughts on the damage itself, and the crystal issue? I feel quite unlucky as this is the first time I’ve ever serviced a watch.
The crystal damage is odd - either the case was dropped or they removed the crystal and caused the damaged that way. New Omega crystals are quite expensive so if they replace it with a genuine Omega crystal it will cost them a fair bit - around $130 US.
The scratch looks like a scratch, so not just a really flaky dial that something has just fallen from. I have certainly had dials that were very fragile and that the finish flaked off easily, and the thing is you have to handle them very carefully and not touch them at all.
Not much they can about the dial, other then finding a replacement as others have suggested.
Yes, the rim of the dial stuff was already there and to be expected given the age.
The scratch by the applied omega logo is the concern.